RNRL ad blitz roils operators' body

Association of Oil & Gas Operators (AOGO), which was set up in 2006 and has members cutting across the E&P industry from ONGC to Reliance, on October 8 wrote to Singh taking exception to ‘external parties’ seeking fixed returns only on investments made in producing hydrocarbons while the risk money and that spent on unsuccessful exploration was forgotten.

Although AOGO did not name as to who was behind the campaign, Anil Ambani group firm RNRL, which is fighting a legal battle with Mukesh Ambani-run RIL for gas supply, had in August brought out an advertisement campaign on the role of government in the tussle.

When contacted, a spokesperson for ADAG, which had recently written to Prime Minister stating that the Oil Ministry’s policies would adversely impact investors response to oil and gas block auction under NELP, declined to comment.The industry will be affected “if such a campaign creates a wrong perception and results in further creating complicating procedures, or delaying decisions,” AOGO said.

“The upstream segment of the hydrocarbon industry is characterised by very high risk and cannot be judged by norms of returns or margins of manufacturing sector,” AOGO said.